Minimum wage report under Economic Committee review

Parliament Speaker, former President Mohamed Nasheed, on Monday, said that the report compiled by the Salaries and Wages Advisory Board was with the Parliament’s Economic Affairs Committee for review.

Nasheed’s remark regarding the report comes after the Economic Minister Fayyaz Ismail, on Sunday, issued a public apology over the delay in declaration of a minimum wage in Maldives – something which he had promised to deliver before the end of February.

Fayyaz said the report was with the Parliament, and that he expected to be instructed on their view regarding the subject “in a matter of days”.

Nasheed, during the parliamentary sitting on Monday morning, acknowledged that the Economic Ministry had sent the Board’s report, along with an additional letter, two weeks back.

“In response to the letter, I, on February 18, sent it [the report] to the Economic Committee of this honorable Parliament.  The report is currently with the Economic Committee,” he said.

Nasheed said the Economic Committee was deliberating over the report, and would hold necessary discussions with all relevant institutions.

The committee will consult with experts before compiling a report of its own findings, he said.

“The committee will forward its recommendations to the parliamentary floor. I believe a number must be set in the committee’s decision. A minimum wage must be fixed,” said Nasheed.

He said that Minister Fayyaz had asked for the view of the Parliament, and that the Parliament would therefore review the report of the Board and would “an amount as minimum wage as per his wishes.”

“In Sha Allah, this will be carried out as one of the Parliament’s tasks. This work will go ahead by consulting all relevant institutions,” said Nasheed.

Salaries and Wages Advisory Board, formed under Employment Act, is empowered to conduct consultations and research into setting a national minimum wage, and advising the Economic Minister regarding the subject.

And Section 59 (a) of Employment Act empowers the Economic Minister with the authority to issue orders to declare, amend or terminate a minimum wage following review of the advice of the board.

The Board, following months of research and evaluations into setting a minimum wage in Maldives, recommended that the national minimum wage be set to MVR 6,400, and that an amount within the range of MVR 6,400 to MVR 8,400 be set as minimum wage for civil servants and tourism sector employees.

The Board recommended that the minimum wage should be applicable to the basic salary, and that the minimum wage should apply to both foreign workers – after a moratorium period of one to two years - and local workers in order to eliminate discrimination and offer protection to workers from all industrial sectors of the Maldivian economy from within the minimum wage system.

It has also recommended that the rates be reviewed once every five years.